Is Pandora a Better Value Than Netflix?

You might not consider Pandora (NYSE: P  ) and Netflix (NASDAQ: NFLX  ) as obvious competitors, but as more and more media companies begin to compete for your consumer dollars, attention, and time, it becomes more clear. At a time when Pandora is still trying to figure out how to maximize profits and Netflix is fending off challenges from Amazon (NASDAQ: AMZN  ) Prime and the alliance between Verizon (NYSE: VZ  ) and Coinstar  (NASDAQ: OUTR  ) , media is becoming increasingly competitive.

In the video below, Fool.com contributor Doug Ehrman discusses the relative value of the two services and why the comparison is important.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

link


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 29, 2013, at 1:42 PM, joshmessages wrote:

    Key difference:

    NFLX has a decent business model and is making money off of every subscription with growth outside of the US while Pandora is taking a loss on the vast majority of it's users.

    additionally, Pandora Media has almost no chance of posting a profit because of high royalty fees and hasn't made a profit once in it's history.

    Furthermore, Pandora Media has never even made an positive operating margin!

Add your comment.

DocumentId: 2393751, ~/Articles/ArticleHandler.aspx, 8/2/2014 1:18:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement